The contract of the Kenyan dealership of German sports car Porsche has been terminated.
The Nairobi owner of the franchise, Porsche AG based in Stuttgart, is set to move the Porsche dealership from Porsche Centre Nairobi to a new entity or an already existing dealer in Kenya.
Other dealers of luxury cars in Kenya are DT Dobie (which sells Mercedes Benz), Inchcape Kenya (Jaguar, BMW and Land Rover) and Bentley Nairobi (Bentley).
Porsche Centre Nairobi and Bentley Nairobi have been enjoying the common ownership through their parent company Multiple Hauliers.
Business Daily reports that Porsche Centre Nairobi will continue to offer parts and service to Porsche clients until March.
The reason for the dealership contract termination is yet to be revealed even as the sales of the luxury sports vehicles has gone down significantly in last few years.
The dealership opened its doors in May 2014 and sold 125 units in the first eight months.
Orders for Porsche’s popular SUV Cayenne was 102 units in 2015 but dropped drastically to 54 units in 2016 and the numbers have been dwindling over the years.
Based on data from the Kenya Motor Vehicle Industry Association (KMI), Porsche Centre Nairobi had sold a total of 420 cars as of November.
Prices in the showroom of the Porsche vehicles range from Sh10 million to Sh28 million and mainly targets the affluent in Kenya, also due to their very high maintenance costs.
DT Dobie last year took over Volkswagen dealership from CMC as DT Dobie lost the Nissan brand to Crown Motors, while General Motors ended sale of Chevrolet cars by Isuzu East Africa.